Franklin Templeton Investment Funds Franklin Biotechnology Discovery Fund Sector Equity 28.02.2022 Fund Fact Sheet E-Mail Web [email protected]www.franklintempleton.com.hk This is a marketing communication. Please refer to the offering documents before making any final investment decisions. For the source and calculation basis of Fund information, please refer to the *Explanatory Notes section. Risk Considerations % Franklin Biotechnology Discovery Fund invests principal ly in equity securities issued by bio n the U. and other countries. % The Fund is subject to market risk, equity risk, biotechnol ogy, communication and technology tion ris smaller and midsize companies risk, growth stocks risk and s ecurities lending risk. % Security lending transactions may involve the risk that th e borrower may fail to return the secu ly manner and the value of the collateral may fall below the valu e of the securities lent out, which m l loss to the Fund. % The Fund may at its discretion pay dividends out of the capit al or out of gross income of the Fun the Fund s fees and expenses out of the capital of the Fund, wh ich results in effectively paying d Payment of dividends out of capital amounts to a return or wit hdrawal of part of an investor s ori any capital gains attributable to that original investment. An y distributions involving payment of d nd s capi payment of dividends effectively out of the Fund s capital ( as the case may be) may result in an i net asset value per share. % Investment involves risks which may result in loss of part o r entire amount of your investment. st, you should make sure the intermediary has explained to you th at the Fund is suitable to you. Inve on this marketing material alone to make investment decisions . Performance* Past performance does not predict future returns. Performance over 5 Years in Share Class Currency (%) Franklin Biotechnology Discovery Fund A (acc) USD 70 90 110 130 150 Fund Overview Base Currency for Fund USD Total Net Assets (USD) 1.82 billion Fund Inception Date 03.04.2000 Number of Issuers 93 Benchmark NASDAQ Biotechnology Index Morningstar Category™* Sector Equity Biotechnology 02/17 08/17 02/18 08/18 02/19 08/19 02/20 08/20 02/21 08/21 02/22 Summary of Investment Objective The Fund aims to achieve capital appreciation by investing principally in equity securities of biotechnology companies and discovery research firms mainly located in the US. Performance in Share Class Currency (%) Cumulative 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Since Incept A (acc) USD -13.13 -13.12 -29.20 2.47 5.27 158.76 223.70 Benchmark in USD -16.60 -15.49 -19.05 12.78 28.59 224.96 275.13 Fund Management* Evan McCulloch, CFA: United States Wendy Lam, PhD: United States Akiva Felt: United States Calendar Year Performance in Share Class Currency (%) 2021 2020 2019 2018 2017 A (acc) USD -17.36 27.52 33.53 -16.31 16.93 Benchmark in USD -0.63 25.69 24.41 -9.32 21.06 Top Ten Holdings* (% of Total) Issuer Name VERTEX PHARMACEUTICALS INC 7.52 AMGEN INC 6.60 REGENERON PHARMACEUTICALS INC 6.30 GILEAD SCIENCES INC 5.20 HORIZON THERAPEUTICS PLC 5.10 ILLUMINA INC 4.51 JAZZ PHARMACEUTICALS PLC 3.25 BIOGEN INC 3.01 PTC THERAPEUTICS INC 2.99 ASCENDIS PHARMA A/S 2.92 Fund Measures P/E to Growth 1.25x Historical 3 Yr Sales Growth 57.81% Estimated 3-5 Yr EPS Growth 4.76% Price to Earnings (12-mo Forward) 14.77x Standard Deviation (5 Yrs) 21.63% Asset Allocation* % Equity 96.63 Cash & Cash Equivalents 3.37 Offering Documents Shareholder Letters
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This is a marketing communication. Please refer to the offering documents before making any final investment decisions.
For the source and calculation basis of Fund information, please refer to the *Explanatory Notes section.
Risk ConsiderationsFranklin Biotechnology Discovery Fund invests principally in equity securities issued by biotechnology companies in the U.S.
and other countries.The Fund is subject to market risk, equity risk, biotechnology, communication and technology sectors risk, concentration risk,
smaller and midsize companies risk, growth stocks risk and securities lending risk.Security lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely
manner and the value of the collateral may fall below the value of the securities lent out, which may result in a substantial lossto the Fund.The Fund may at its discretion pay dividends out of the capital or out of gross income of the Fund while paying all or part of
the Fund s fees and expenses out of the capital of the Fund, which results in effectively paying dividends out of capital.Payment of dividends out of capital amounts to a return or withdrawal of part of an investor s original investment or from anycapital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund s capital orpayment of dividends effectively out of the Fund s capital (as the case may be) may result in an immediate reduction of the netasset value per share.Investment involves risks which may result in loss of part or entire amount of your investment. Before you decide to invest,
you should make sure the intermediary has explained to you that the Fund is suitable to you. Investors should not only base onthis marketing material alone to make investment decisions.
Performance*
Past performance does not predict future returns.
Performance over 5 Years in Share Class Currency (%)
The Fund aims to achieve capital appreciation byinvesting principally in equity securities of biotechnologycompanies and discovery research firms mainly located inthe US.
Performance in Share Class Currency (%)
Cumulative3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Since Incept
A (acc) USD -13.13 -13.12 -29.20 2.47 5.27 158.76 223.70
Benchmark in USD -16.60 -15.49 -19.05 12.78 28.59 224.96 275.13
Fund Management*
Evan McCulloch, CFA: United States
Wendy Lam, PhD: United States
Akiva Felt: United States
Calendar Year Performance in Share Class Currency (%)
2021 2020 2019 2018 2017
A (acc) USD -17.36 27.52 33.53 -16.31 16.93Benchmark in USD -0.63 25.69 24.41 -9.32 21.06
The charges are the fees the fund charges to investors to cover the costs of running the Fund. Additional costs, including transaction fees, will also be incurred. These costs are paid out by theFund, which will impact on the overall return of the Fund.Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations.
Legg Mason Asset Management Hong Kong Limited is an indirect wholly owned subsidiary of Franklin Resources, Inc.For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the Fund and will not be investing directly in the underlying assets of the Fund.
Issuer: Franklin Templeton Investments (Asia) Limited
Last updated: December 2021
• This statement provides you with key information about this product.
• This statement is a part of the offering document.
• You should not invest in this product based on this statement alone.
Quick facts
Management company: Franklin Templeton International
Services S.à r.l.
Investment manager(s): Franklin Advisers, Inc., United States
of America (internal delegation)
Depositary: J.P. Morgan Bank Luxembourg S.A.
Base currency: USD
Financial year end of this Fund: 30 June
Dealing frequency: Every Hong Kong Business Day
Minimum Investment: USD 1,000 [initial] and USD 500 [subsequent purchases] or equivalent
Ongoing charges over a year#: Class A (acc) HKD: 1.83%
Class A (acc) USD: 1.83%
Class B (acc) USD: 3.14% #The ongoing charges figures are based on the annual report for the year ended 30 June 2021. These figures may vary from year to year.
Dividend policy: Dividends, if declared, will be reinvested unless
indicated by you in the application form to be paid out. Subject to
any legal and regulatory requirements, the Fund may at its
discretion pay dividends out of the capital or out of gross income
of the Fund while charging / paying all or part of the Fund’s fees
and expenses to / out of the capital of the Fund, which results in
an increase in distributable income for the payment of dividends
by the Fund and therefore, the Fund may effectively pay dividends
out of capital. The Fund may amend such distribution policy
subject to the Securities and Futures Commission (“SFC”)’s prior
approval and by giving not less than one month’s prior notice to
investors. Any distributions involving payment of dividends out of
the Fund’s capital or payment of dividends effectively out of the
Fund’s capital (as the case may be) may result in an immediate
reduction of the net asset value per share.
What is this product?
This is a fund constituted in the form of a mutual fund. It is domiciled in Luxembourg and its home regulator is Commission de
Surveillance du Secteur Financier.
Investment Objective and Policy
Franklin Biotechnology Discovery Fund (the “Fund”) aims to increase the value of its investments over the medium to long term.
The Fund invests principally (that is, at least two-thirds of the Fund’s net assets) in:
• equity securities issued by biotechnology companies located in the U.S. and other countries
In exceptional market circumstances (such as extreme volatility) and on a temporary basis only, 100% of the Fund’s net assets may
be invested in liquid assets, with due regard to the principle of risk spreading.
Franklin Templeton Investment Funds - Franklin Biotechnology Discovery Fund 1
Franklin Templeton Investment Funds - Franklin Biotechnology Discovery Fund 2
The Fund can invest on an ancillary basis in:
• higher-quality debt securities issued by corporate issuers
A biotechnology company is one that earns at least 50% of its profits from or is devoted to activities such as health care,
pharmaceuticals or agriculture. The Fund will usually invest more in the U.S. than in any other country.
For the purpose of generating additional capital or income or for reducing costs or risks, the Fund may engage in securities lending
transactions for up to 50% of its net assets, in a manner that is consistent with its investment policy. For the avoidance of doubt, any
securities lending will be an ancillary activity of the Fund only.
Use of derivatives / investment in derivatives
The Fund’s net derivative exposure may be up to 50% of the Fund’s net asset value.
What are the key risks?
Investment involves risks. Please refer to the offering document for details including the risk factors.
• Market risk: The market values of securities owned by the Fund will tend to go up or down, sometimes rapidly or
unpredictably, due to factors affecting individual issuers, particular industries or sectors within securities markets, or because of
general market conditions. During a general downturn in the securities markets, multiple asset classes (including different
sectors of the same asset class) may decline in value at the same time. Similarly, when markets perform well, there can be no
assurance that securities held by the Fund will participate in the advance. Because the securities the Fund holds fluctuate in
price in this manner, the Fund’s value may go down as well as up and investors may be adversely affected.
• Equity risk: Equity and equity-linked securities are subject to significant price movements due to various economic, political,
market and issuer-specific factors. Such changes may adversely affect the value of equities regardless of issuer-specific
performance. Additionally, different industries, financial markets and securities can react differently to these changes. Such
fluctuations of the Fund’s value are often exacerbated in the short-term. Financial markets trends (including feared or actual
failures in the banking system) may also cause large fluctuations in the prices of such securities. As a result, the Fund may be
adversely affected.
• Foreign currency risk: The Fund will typically invest to a significant degree in securities that are denominated in currencies
other than the base currency of the Fund, exposing its investments to changes in foreign exchange rates and the possibility of
exchange control regulations. Changes in currency exchange rates may adversely affect the value of the Fund, and also may
affect the income earned by the Fund and gains and losses realized by the Fund. Furthermore, the total return for a share
class that is denominated in a different currency (the “alternative currency”) from the base currency of the Fund may be
affected, either positively or negatively, by changes in the exchange rate between the Fund’s base currency and the alternative
currency.
• Liquidity risk: The Fund may not be able to easily sell securities due to adverse market conditions or reduced value or
creditworthiness of issuers in which it invests. The inability of the Fund to sell securities or positions may also impede the ability
of the Fund to meet redemption requests in a timely manner. Certain securities may also be illiquid due to limited trading
markets or contractual restrictions on their resale. Reduced liquidity due to these factors may have an adverse impact on the
net asset value of the Fund.
• Biotechnology, communication and technology sectors risk: Investment in the biotechnology, communication and
technology sectors may present greater risk and higher volatility than investment in a broader range of securities covering
different economic sectors. Companies in these sectors may be in their preliminary stage of development and therefore may
rely heavily on research development and may face intense competition which may have an adverse effect on profit margins
and such companies will have high uncertainty and volatility in price performance when compared to other economic sectors.
The value and performance of the Fund may be adversely affected as a result.
Franklin Templeton Investment Funds - Franklin Biotechnology Discovery Fund 3
• Debt securities risk: The Fund is exposed to the credit/default risk of issuers of the debt securities that the Fund may invest
in. Investment in the Fund is subject to interest rate risk. The debt securities will generally increase in value when interest rates
fall and decrease in value when interest rates rise.
• Concentration risk: The Fund’s investments are concentrated in a single sector. The value of the Fund may be more volatile
than that of a fund having a more diverse portfolio of investments and may be more susceptible to adverse economic, political,
policy, foreign exchange, liquidity, tax, legal or regulatory events affecting the sector in which it invests.
• Smaller and midsize companies risk: Stocks of smaller- and mid-sized companies tend to be less liquid and more volatile to
adverse economic developments than larger, more recognized companies, particularly if such companies are in emerging
markets, which results in higher risk for the Fund. The value and performance of the Fund may be adversely affected as a
result.
• Growth stocks risk: Growth stocks can be more volatile and may be more expensive, relative to earnings, than the market in
general. The Fund may be adversely affected by the greater volatility of investments in such stocks.
• Dividend policy risk: The Fund’s dividend policy allows for payment of dividends out of capital or effectively out of capital.
Where this is done, it amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains
attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of
dividends effectively out of the Fund’s capital (as the case may be) may result in an immediate reduction of the net asset value
per share.
• Counterparty risk: The Fund may be exposed to the credit/default risks of its counterparties and the Fund/investors may be
adversely impacted.
• Securities lending risk: Securities lending transactions may involve the risk that the borrower may fail to return the securities
lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out, which may result in
a substantial loss to the Fund.
• Derivative instruments risk: Derivative instruments involve cost, may be volatile, and may involve a leverage effect. A small
market movement may give rise to a proportionately larger impact, which may cause substantial loss to the Fund. Other risks
include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. In adverse
situations, the Fund’s use of derivative instruments may become ineffective and the Fund may suffer significant losses.
Franklin Templeton Investment Funds - Franklin Biotechnology Discovery Fund 4
How has the Fund performed?
• Past performance information is not indicative of future performance. Investors may not get back the full amount invested.
• The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividends reinvested.
• These figures show by how much class A (acc) USD increased or decreased in value during the calendar year being shown.
Class A (acc) USD is the share class available in Hong Kong with the longest history in the Fund. Performance data has been
calculated in USD, including ongoing charges and excluding subscription fee and redemption fee you might have to pay.
• Fund launch date: 3 April 2000
• Class A (acc) USD launch date: 3 April 2000
• Effective 25 February 2021, NASDAQ Biotechnology Index was added as the benchmark of the Fund to adhere to European
disclosure rules regarding the use of benchmark.
Is there any guarantee?
This Fund does not have any guarantees. You may not get back the full amount of money you invest.
Franklin Templeton Investment Funds - Franklin Biotechnology Discovery Fund 5
What are the fees and charges?
Charges which may be payable by you
You may have to pay the following fees when dealing in the shares of the Fund.
Class A Class B
Subscription fee (Initial sales charge) Up to 5.00% of the
subscription amount
N/A
Switching fee (Switching charge)* 1.00% of the value of the
shares being switched
N/A
Redemption fee (Redemption charge) N/A Up to 4.00%
Ongoing fees payable by the Fund
The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments.
Annual rate (as a % of the Fund’s net asset value)